PRESENTATION OF THE HALF-YEAR RESULTS 2018

NOTES to the consolidated financial statements

Significant accounting and valuation policies

Investis
Holding SA (“the Company”) is based in Zurich, Switzerland. Its
shares have been traded on the SIX Swiss Exchange since 30 June 2016 (IREN). The unaudited consolidated financial statements, prepared as at 30 June 2018, include
Investis Holding SA and all its direct or indirect subsidiaries and joint ventures (Investis
Group) as well as its shareholdings in associated companies.

The
business activity of the Investis Group includes the long-term holding of
residential and commercial properties as well as comprehensive real estate
services in the areas of property management and facility services.

Principles

The unaudited interim consolidated financial statements of Investis Holding SA have been prepared in accordance with Swiss GAAP FER 31 “Complementary recommendation for listed companies” and with the special provisions for real estate companies specified in Art. 17 of the SIX Swiss Exchange’s Directive on Financial Reporting. They give a true and fair view of the assets, liabilities and earnings of Investis Holding SA.

The consolidation and accounting policies applied to the present consolidated financial statements are unchanged from those applied to the 2017 consolidated financial statements.

These interim financial statements do not contain all information and disclosures required for annual financial reporting and should therefore be read in conjunction with the consolidated financial statements as at 31 December 2017.

Real estate valuation method and technique

The
properties held for investment purposes were valued on the basis of the fair
value assessments (update valuations) performed by a recognised independent
real estate expert (Wüest Partner AG) as at 30 June 2018 using the DCF
(discounted cash flow) method. The valuation method and technique applied for
the half-year financial statements for 2018 are unchanged from the previous
year.

Scope of consolidation

On 1 February 2018, Investis Properties SA acquired 100% of the shares in the real estate company Société d’investissements immobiliers SII SA, Geneva, and merged it into the acquiring company.

On 1 February 2018, 100% of the shares in Domus Flavia Investments AG, Geneva, were sold.

On 9 January 2017, Investis Properties SA acquired 100% of the shares in the real estate company Alaïa Invest SA, Lens.

On 10 January 2017, Investis Investments SA acquired 100% of the shares in Wegra Holding AG, which holds 100% of operating subsidiaries of “Hauswartsprofis”. The company provides services in the area of facility management and strengthens the facility service range offered by the Real Estate Services segment in the greater Zurich area.

On 10 March 2017, Investis Properties SA acquired 100% of the shares in the real estate company Domus Angelo Sàrl, Luxembourg.

On 1 May 2017, Investis Properties SA acquired 100% of the shares in the real estate company Jalu SA, Geneva.

1st half 2018

1st half 2017

In CHF 1,000

Acquisitions

Disposals

Acquisitions

Total

Total

Hauswartprofis

Others

Total

Cash and cash equivalents

106

-

5,942

125

6,067

Trade and other current receivables

19

370

899

2

901

Investment properties and properties held for sale

130,616

18,900

-

35,951

35,951

Fixed assets

-

-

1,223

-

1,223

Financial assets

-

-

-

-

-

Trade and other current liabilities

–1,754

–228

–1,877

–296

–2,173

Non-current liabilities

–22,357

–1,388

–286

–10,150

–10,437

Net assets acquired/disposed of

106,630

17,654

5,900

25,632

31,532

Goodwill (recognised in equity)

-

-

14,720

5

14,725

Recognised income from disposal of investment properties

-

6,529

-

-

-

Purchase/selling price

106,630

–24,183

20,619

25,638

46,257

Cash and cash equivalents acquired/disposed of

–106

-

–5,942

–125

–6,067

Unpaid purchase price consideration

–1,330

-

Purchase price consideration paid/received in prior years1, 2)

–10,800

1,500

Cash outflow on acquisitions

94,394

14,678

25,513

40,190

Cash inflow from disposals

–22,683

1)With the sign-off of the purchase price agreement for the acquisition of Société d'investissements immobiliers SII SA, Geneva, a deposit of CHF 10.8 million was paid in December 2017. As the transaction was completed only in February 2018, the corresponding cash outflow was reported as increase in other receivables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.

2)With the sign-off of the purchase price agreement for the sale of Domus Flavia Investment AG, Geneva, a deposit of CHF 1.5 million was received in December 2017. As the transaction was completed only in February 2018, the corresponding cash inflow was reported as increase in other payables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.

4. Earnings per share and net asset
value

Earnings per share are calculated by dividing the net profit attributable to Investis Holding SA shareholders by the weighted average number of outstanding shares entitled to dividends. All new shares are entitled to full dividend rights. For both periods under review there were no dilutive effects.

Weighted average number of shares

1st half 2018

1st half 2017

Shares issued as at 1 January

12,800,000

12,800,000

Effects of change in holdings of treasury shares

–37,751

-

Weighted average number of shares as at 30 June

12,762,249

12,800,000

Earnings per share

1st half 2018

1st half 2017

Net profit attributable to Investis Holding SA shareholders

in CHF 1,000

21,715

27,640

Weighted average number of shares

12,762,249

12,800,000

Earnings per share (basic/diluted)

in CHF

1.70

2.16

Net asset value per share

30.06.2018

31.12.2017

Equity attributable to the shareholders of Investis Holding SA at end of period

In the 1st half 2018, the two properties “Rue de Zurich 35” in Geneva and “Rue du Vieux-Chêne 20–22” in Chêne-Bougeries were acquired with the takeover of Société d’investissements immobiliers SII SA. The increases relate to ongoing construction activities of the properties “Saanen”, “Hérémence” and “Chemin des Chantres 8” in St.-Sulpice. The property “Rue du Vieux-Chêne 20–22” and one apartment in the jointly held (50%) property “Rue du Prado 19” in Lens were sold. The property “Chemin des Chantres 8” was reclassed from investment properties under construction (non-current assets, valued at fair value) and is subsequently valued at the lower of this value (including construction costs after reclassification) or fair value.

In the 1st half 2017, one apartment in the jointly held (50%) property “Rue du Prado 19” in Lens was sold and the land “Saanen”, previously undeveloped plots of land, was reclassified as property held for sale.

6. Investment properties

In CHF 1,000

Residential
properties

Commercial
properties

Properties
under
construction

Undeveloped
plots of land

Total
investment
properties

Market value as at 1 January 2017

841,961

113,129

64

7,328

962,481

Acquisition costs as at 1 January 2017

332,905

97,747

64

7,328

438,044

Changes in scope of consolidation

12,971

22,859

122

-

35,951

Increases

1,651

50

6,231

1,688

9,619

Disposals

–1,205

–4,965

-

-

–6,170

Reclassifications

-

-

-

–7,328

–7,328

Acquisition costs as at 30 June 2017

346,323

115,691

6,416

1,688

470,117

Revaluation as at 1 January 2017

509,056

15,382

-

-

524,438

Gains on valuations

22,730

126

-

-

22,856

Losses on valuations

–2,418

–3,280

-

-

–5,698

Disposals

–1,700

–97

-

-

–1,797

Revaluation as at 30 June 2017

527,667

12,131

-

-

539,798

Market value as at 30 June 2017

873,990

127,822

6,416

1,688

1,009,916

Market value as at 1 January 2018

940,629

127,784

14,826

1,673

1,084,912

Acquisition costs as at 1 January 2018

405,432

115,999

14,701

1,673

537,804

Changes in scope of consolidation

122,766

–19,939

-

-

102,827

Increases

56,288

907

2,963

-

60,159

Disposals

–8,033

–7,387

-

-

–15,420

Reclassifications

–2,534

-

–730

-

–3,264

Acquisition costs as at 30 June 2018

573,919

89,581

16,933

1,673

682,106

Revaluation as at 1 January 2018

535,197

11,785

126

-

547,108

Changes in scope of consolidation

-

1,039

-

-

1,039

Gains on valuations

10,000

488

-

-

10,488

Losses on valuations

–6,255

–1,545

-

-

–7,801

Disposals

1,103

2,327

-

-

3,430

Reclassifications

-

-

–126

-

–126

Revaluation as at 30 June 2018

540,045

14,093

-

-

554,138

Market value as at 30 June 2018

1,113,964

103,674

16,933

1,673

1,236,244

Increases consisted of value-enhancing renovations, purchases of buildings and investments.

In the 1st half 2018, one residential property (Route de Pliany 16–18 in Crans-Montana) and one commercial property (Chemin Lambien in Sion) were sold. Additionally, the consolidated Group company “Domus Flavia Investments AG” and with it one commercial propery (Rue Peillonnex 39 in Chêne-Bourg) was disposed.

In the 1st half 2017, two residential properties (Avenue Général-Guisan 40 in Pully, Route de Crans 87 in Lens) and one commercial property (Chemin de Planchy 15/15a in Bulle) were sold.

The valuation of investment properties was carried out by Wüest Partner AG in accordance with national and international standards and guidelines.

7. Financial liabilities

In CHF 1,000

30.06.2018

31.12.2017

Amortisation obligations on mortgages

-

160

Loans from third parties

6,330

5,000

Current mortgages

6,495

6,532

Current bonds

140,000

-

Current financial liabilities

152,825

11,692

Mortgages

7,231

9,665

Bonds

380,000

420,000

Loans from third parties

3,979

4,916

Non-current financial liabilities

391,210

434,581

Total financial liabilities

544,035

446,273

Mortgages and fixed advances that are not repaid within twelve months but which are renewed are reported under “Non-current financial liabilities” to reflect the economic reality. Mortgages due for repayment within the next twelve months are reported under short-term financial debt.

In the 1st half 2018, a CHF 100 million bond, maturing on 12 June 2020, with a coupon of 0.35%, was issued on 12 June 2018.

In the 1st half 2017, a CHF 140 million bond maturing on 14 February 2019 was issued on 14 February 2017. The coupon is 0.25%.

As at the balance sheet date, the following bonds are outstanding:

ISIN

CH 033 764 551 6

CH 035 259 586 9

CH 036 153 322 4

CH 037 347 679 2

Currency

CHF

CHF

CHF

CHF

Issuing volume

100 millions

140 millions

180 millions

100 millions

Listing

SIX Swiss Exchange

SIX Swiss Exchange

SIX Swiss Exchange

SIX Swiss Exchange

Coupon

0.55%

0.25%

0.75%

0.35%

Tenor

5 years

2 years

5 years

2 years

Payment date

15 November 2016

14 February 2017

3 October 2017

12 June 2018

Redemption date

15 November 2021

14 February 2019

3 October 2022

12 June 2020

Investment properties in the amount of CHF 241.9 million (31.12.2017: CHF 245.3 million) were pledged to secure mortgages.

1)Mortgages due within the first year are reported under non-current liabilities if extensions are planned.

2)Loans from third parties include as at 30 June 2018 unsettled purchase price consideration for the Privera Group acquisition (September 2014) of CHF 5 million (31.12.2017: CHF 5 million), which is interest-free and amortised annually by CHF 5 million, and a further unsettled purchase price consideration for the acquisition of Société dʼinvestissements immobiliers SII SA (February 2018) of CHF 1.3 million, which is interest-free and paid in July 2018. The remaining loans from third parties have no fixed maturity.

Interest maturity periods are as follows (composition until next interest rate adjustment):

In CHF 1,000

Interest rates
as at 30.06.2018

30.06.2018

31.12.2017

Up to one year

153,727

16,357

Up to 2 years

100,000

140,000

Up to 3 years

-

-

Up to 4 years

100,000

100,000

Up to 5 years and beyond

180,000

180,000

Total mortgages and bonds

0.25%─1.05%

533,727

436,357

Loans from third parties

10,308

9,916

Total other financial liabilities

0.0%

10,308

9,916

Total financial liabilities

544,035

446,273

The weighted average interest rate for all mortgages and bonds amounts to 0.5% (1st half 2017: 0.7%).

8. Events after the balance sheet date

The Board of Directors approved the consolidated financial statements for publication on 28 August 2018.

No other events occurred between 30 June 2018 and the date of approval of the consolidated financial statements, which would require adjustments to the carrying amounts of the Group’s assets and liabilities as at 30 June 2018 or disclosure in this section.

9. Group companies

30.06.2018

31.12.2017

Domicile

Original currency

Share capital in CHF 1,000

Ownership interest1)

Ownership interest1)

Footnote

Properties

Investis Properties SA

Lens

CHF

1,650

100%

100%

C

Valotel SA

Lens

CHF

2,000

100%

100%

C

Domus Angelo S.à.r.l.

Luxembourg (LUX)

EUR

200

100%

100%

C

Alaïa Invest SA

Lens

CHF

100

100%

100%

C

Hotel Investissements et Management AG

Fribourg

CHF

100

100%

100%

C

Volki-Land AG

Volketswil

CHF

50

100%

100%

C

OR omiresidences Sàrl

Lens

CHF

20

100%

100%

C

La Foncière de la Dixence SA

Lens

CHF

200

75%

75%

C2)

Raffaele Investissement SA

Lens

CHF

100

50%

50%

Q

Domus Flavia Investments AG

Geneva

CHF

100%

C3)

Investis Patrimoine SA

Lens

CHF

100%

C4)

Serge Spaggiari SA

Perly-Certoux

CHF

100%

C4)

Jalu SA

Lens

CHF

100%

C4)

Parallax SA

Geneva

CHF

100%

C4)

Casamar AG

Geneva

CHF

100%

C4)

Les Résidences Privées SA

Lens

CHF

100%

C4)

Real Estate Services

Privera AG

Muri bei Bern

CHF

4,000

100%

100%

C

Régie du Rhône SA

Lancy

CHF

3,000

100%

100%

C

Régie du Rhône Crans-Montana SA

Lens

CHF

100

100%

100%

C

Hauswartprofis AG

Mägenwil

CHF

200

100%

100%

C

Synergie Services Facility Management SA

Lancy

CHF

100

100%

100%

C

AGD Renovationen AG

Neuenhof

CHF

500

53%

53%

C

Chauffage-Assistance SA

Geneva

CHF

100

100%

100%

C

Clim-Assistance SA

Geneva

CHF

100

100%

100%

C

SoRenova SA

Lens

CHF

100

100%

100%

C

WEGRA Holding AG

Auenstein

CHF

100%

C4)

Hauswartprofis Mägenwil AG

Mägenwil

CHF

100%

C5)

Hauswartprofis ZH AG

Dübendorf

CHF

100%

C5)

Hauswartprofis Baar GmbH

Baar

CHF

100%

C5)

Treos AG

Volketswil

CHF

100%

C5)

Corporate

Investis Holding SA

Zurich

CHF

1,280

n.a.

n.a.

C

Investis Investments SA

Lens

CHF

1,000

100%

100%

C*)

Investis Management SA

Lens

CHF

100

100%

100%

C

Investis SA

Lens

CHF

100

100%

100%

C

Insite Management SA

Echandens

CHF

120

42%

42%

E

Polytech Ventures Holding SA

Ecublens

CHF

143

50%

50%

E

PropTech Partners SA

Ecublens

CHF

140

44%

E

YetiVisit SA

Bulle

CHF

167

40%

E

Minas-Tirith SA

Wollerau

CHF

100%

C6)

Transimo SA

Fribourg

CHF

100%

C4)

C)Consolidated

Q)Joint venture, consolidated proportionally

E)Included in the consolidated financial statements using the equity method